On July 1, 2014, Linden Company purchased the copyright to Norman Computer Tutorials for $140,000. It is estimated that the copyright will have a useful life of 5 years. [ The amount of amortization expense recognized for the year 2014 would be $28,000.
Amortization expense= 140,00/5 = 28,000.
ABC Corp. receives a 7-month interest-bearing promissory note in the amount of $360,000 on February 1. The interest rate is 15%. What is the total interest expense ABC Corp will record assuming ABC makes all of its payments?
The total interest expense ABC Corp will record is $31,500.
$360,000(0.15)(7/12) = $31,500.00 (More)